Recession fears and record inflation numbers are pointing to the slowest second quarter for initial public offerings since the Great Recession in 2009, according to a report released Friday. Health care and technology IPOs are leading the pack with the most offerings.
Thus far, there have been 21 IPOs raising $2.1 billion for the period that ends June 30. Only six of those raised more than $100 million, led by eye-care spinoff Bausch and Lomb, said the report by Renaissance Capital. It said the median deal size shrank to $22 million, a multi-decade low.
The June tally includes the IPO of Ivanhoe Electric, which is scheduled to price before June 30 and assumes pricing at the midpoint of the offering. No other IPOs are scheduled for June.
Energy IPOs A Rare Bright Spot
The energy sector was a rare bright spot, producing the quarter's best-performing large issuers.
The Renaissance report also said that IPOs of Special Purpose Acquisition Companies, or SPACs, fell to just 14.
On a positive note during the quarter, several large IPOs in the pipeline updated their plans to go public. However, new filings sank to a six-year low.
"New issuers are still waiting for better conditions, and meaningful IPO activity is unlikely to resume until returns improve," said Renaissance, which manages two IPO-related exchange traded funds.
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